The Charity Commission has opened statutory inquiries into two charities, Families for Survival UK and Save The Age Ltd, over concerns about their financial administration and alleged possible involvement in benefit fraud
Families for Survival UK has aims which include the relief of poverty, sickness and the advancement of education for people in Kenya, Bangladesh, Nepal, and the Maldives. Save The Age Ltd is described as providing dementia resource support pack and other items for the relief of poverty, sickness and social isolation in Bangladesh, Brazil and India.
In 2014, the accounts for Families for Survival UK were qualified. They showed income of £316,532 for the year ended 31 March 2014, and expenditure of £318, 511. In comparison, the charity’s income in 2011 was £24,814.
The Charity Commission says it has been monitoring Families for Survival UK’s fundraising practices and financial administration and has provided regulatory advice and guidance to the trustees since February 2014.
This monitoring was linked to serious regulatory concerns about the charity’s financial administration and use of its funds, including payments made to trustees and volunteers.
More recently the commission was informed by other agencies that they were investigating concerns that both charities were being used as a vehicle for fraudulent state benefit claims.
The commission says the evidence provided by these agencies also casts doubt on the true identity of the trustees and validity of the charities’ financial statements. This information has triggered the opening of the statutory inquiries.
The current investigations will look at whether the current and former trustees have properly exercised their legal duties and responsibilities under charity law in the administration of the charity; its financial management; whether there has been any direct/indirect private benefit to trustees with regard to the operation of the charity’s assets; whether the trustees have operated the charity in furtherance of its charitable objects and for the public benefit; and whether there has been any misconduct and/or mismanagement.
The Charity Commission says it will publish a report on its findings in due course.
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